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Abstract

The emergence of electricity-generated fuel (e-Fuel) had established its supreme importance in terms of addressing the climate change crisis. The usage of renewable electricity as the main source of energy and the primary raw material for the production of water and carbon dioxide (CO2) was common in most e-Fuel processes. Commercially, the e-Fuel was used by various companies such as Porsche, Audi, Ferrari, etc. In 2022, Porsche and several partners had started the production of a climate neutral 'e-Fuel', which had aimed at substituting gasoline in 'vehicles with conventional internal combustion engines'. Further, Porsche had announced the start of production at the Chilean production plant for the first time in late 2020, when the automaker had confirmed that it would invest approximately USD24 million for the development of the e-Fuels production plant. However, the manufacturing of e-Fuels was very costly and energy-intensive in nature. In contrast, Porsche had confirmed that per litre cost of e-Fuel was mainly dependent on the volume of future production. In this context, would Porsche's e-Fuel production drive replace the traditional gasoline in future?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2023.

Geographical setting

Region:
World/global

About

Abstract

The emergence of electricity-generated fuel (e-Fuel) had established its supreme importance in terms of addressing the climate change crisis. The usage of renewable electricity as the main source of energy and the primary raw material for the production of water and carbon dioxide (CO2) was common in most e-Fuel processes. Commercially, the e-Fuel was used by various companies such as Porsche, Audi, Ferrari, etc. In 2022, Porsche and several partners had started the production of a climate neutral 'e-Fuel', which had aimed at substituting gasoline in 'vehicles with conventional internal combustion engines'. Further, Porsche had announced the start of production at the Chilean production plant for the first time in late 2020, when the automaker had confirmed that it would invest approximately USD24 million for the development of the e-Fuels production plant. However, the manufacturing of e-Fuels was very costly and energy-intensive in nature. In contrast, Porsche had confirmed that per litre cost of e-Fuel was mainly dependent on the volume of future production. In this context, would Porsche's e-Fuel production drive replace the traditional gasoline in future?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2023.

Geographical setting

Region:
World/global

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